“We’re making good progress.”
That’s how Federal Reserve Chair Jerome Powell characterized the government’s efforts to stem the steep rise in inflation that has plagued the U.S. economy for some time during an interview on CBS’s 60 Minutes.
And while it has fallen gradually for nearly a year, rates remain high, which prompted Scott Pelley to ask Powell why it’s not time to cut the rates.
“Well, we have a strong economy,” Powell said. “Growth is going on at a solid pace. The labor market is strong: 3.7% unemployment. And inflation is coming down. With the economy strong like that, we feel like we can approach the question of when to begin to reduce interest rates carefully.
“And, you know, we want to see more evidence that inflation is moving sustainably down to 2%,” he continued. “We have some confidence in that. Our confidence is rising. We just want some more confidence before we take that very important step of beginning to cut interest rates.”
Powell said to expect multiple interest rate cuts this year, a move he said will be crucial “particularly for younger couples starting out, who may not have great financial means, that we succeed in this effort.
With a Presidential election just months away, obviously the economy will be under intense scrutiny throughout 2024.